Ho Chi Minh City targets 8-pct economic growth next year

The southern metropolis Ho Chi Minh City has set the target of achieving an 8 percent economic growth for next year.

This is one of the goals for 2016 that were adopted at the second conference of the municipal 10th Party Committee during its second conference on December 1-2.

The city is set to increase the rate of trained workers to 75 percent, reduce the rate of poor households by 1 percent, and supply clean water to all households.

It will also strive to be among the top five localities nationwide in terms of the provincial governance and public administration performance index, the provincial competitiveness index and the public administration reform index.

Speaking at the event, Standing Vice Secretary of the municipal Party Committee Vo Van Thuong hailed the city for its progress in Party building and mass mobilisation last year, fulfilling the 2011-2015 goals and creating impetus to the 2016-2020 development.

He asked for improving business climate, streamlining procedures, exercising thrift and preventing wastefulness while addressing existing problems that raise public concern in order to realise the set targets.

Politburo member Le Thanh Hai, who is assigned to lead the municipal Party Committee until the National Party Congress, asked the city to improve its economic competitiveness by increasing productivity, accelerating administrative procedure reform and corporate training.

More attention should be paid to support industry, new rural development and the seven economic breakthrough programmes, he added.

“Golden week” to stimulus tourism in Thua Thien-Hue

Central Thua Thien-Hue province will launch a “golden week” of tourism from December 24-30, expecting it to pick up tourist arrivals by 8 percent to 3.15 million this year.

It also sets to earn 3 trillion VND, or 133.4 million USD, in tourism revenue in the year, contributing to 55 percent of the local Gross Domestic Products (GDP).

To that end, a wide range of special offers will be given to visitors to Hue relic sites during the week, for example, discount tickets for students, free admission to King Thieu Tri Mausoleum and An Dinh Palace when purchasing tickets for a tour to Imperial City – King Minh Mang Mausoleum – King Khai Dinh Mausoleum, and 30 percent off tickets to Royal Court Music concerts at Duyet Thi Duong Theatre.

This year, provincial authority has adopted a number of measures to boost local tourism sector. They have fostered regional cooperation for tourism development, opened new flight routes, and worked to attract cruise ship visitors.

According to the provincial Department of Culture, Sports and Tourism, Thua Thien- Hue worked with neighbouring Da Nang and Quang Nam to promote tours to tourism hotspots in the three localities among holidaymakers from Japan, the Republic of Korea and Western Europe countries.

The trio plan to together build a common tourism brand identity and issue tourism marketing materials including promotional CDs, tourism handbooks and bags.

Thua Thien-Hue province welcomed approximately 2.9 million travellers, including more than 948,000 from overseas, in the last 11 months, up 7 percent and 3.39 percent from the same period last year, respectively. It earned nearly 2.55 trillion VND (about 113.3 million USD) in revenue, up 2.53 percent.

International expos promote industrial products

The ContechMining Vietnam 2015 international trade fair opened in Hanoi on December 2, showcasing the latest updates on construction and mining technology, equipment, machinery, and building materials.

The four-day exhibition, organised by the Hanoi Advertising and International Fair JSC (Hadifa), is drawing over 70 businesses from a number of countries and territories, including Germany, the Republic of Korea, Japan, India, and China.

A series of workshops will also be held in the framework of the expo, dealing with issues of interest such as finance-property market outlook and the efficiency of coal and oil exploitation.

On the same day, an international exhibition on machinery equipment, raw materials and industrial products (VINAMAC Expo 2015) was inaugurated in Ho Chi Minh City.

The event attracted 250 booths run by 200 domestic and international exhibitors.

The exhibition will offer enterprises the chance to select and source high-quality products from many developed countries as well as promote their products and expand business networks.

Organised by the Vietnam Advertisement and Fair Exhibition JSC (VIETFAIR), the event will run until December 5.

President confident in Mekong Delta’s farming prospect

President Truong Tan Sang has stated that the agriculture-reliant Mekong Delta will grow further on the back of more capital inflows.

During a working session with the Steering Committee for the Southwestern Region in the Mekong Delta city of Can Tho on December 2, the President asked the committee to weigh opportunities and challenges ahead when Vietnam joins a number of free trade agreements in order to make appropriate preparations for integration.

He urged localities in the region to spread effective farming models to lift farmers out of middle-income trap.

About infrastructure against climate change, he requested mechanisms to mobilise foreign resources and the use of advanced construction techniques to ensure effective long-term investment.

The President also called for developing transport routes connecting Ho Chi Minh City with the southwestern region to facilitate the trade of goods and farm produce.

According to the committee, the region has harvested 3.1 milllion tonnes or rice and 3.3 million tonnes of aquatic products since early this year.

It has raked in 10.9 billion USD from exports, contributed 71 trillion VND (3.22 billion USD) to the State budget and recognised 236 out of 260 communes as new-style rural areas.

Vietnam int’l trade fairs kick off in Ho Chi Minh City

Over 450 enterprises from 20 countries and territories worldwide are showcasing their products at the 13th Vietnam International Trade Fair (Vietnam Expo), which opened at the Saigon Exhibition and Convention Centre (SECC), Ho Chi Minh City on December 2.

On display at nearly 550 booths are industrial equipment, electronic products, kitchen appliances, bathroom accessories, wooden and rattan products and handicrafts, among others.

According to Deputy Minister of Industry and Trade Ho Thi Kim Thoa, Vietnam Expo has affirmed its role in creating opportunities for both domestic and international enterprises to enhance cooperation and promote their products.

Meanwhile, President of the Republic of Korea (RoK)’s Bucheon Chamber of Commerce and Industry Cho Chun-yong said that Vietnam Expo has served as a bridge to expedite trade collaboration between the two countries’ enterprises.

He added that though the exhibition, the RoK businesses expect to enlarge markets and popularise their brands in Vietnam.

On the same day, the fourth Vietnam International Bicycle Exhibition (Vietnam Cycle 2015), the only event on the bicycle and spare part industry, also took place at the SECC, drawing 120 domestic and foreign companies.

Fifty domestic and foreign bike brands including Thong Nhat, Viet Bamboo Bike, Fonix and Jet are being showcased at the event.

Within the framework of the exhibition, representatives from 10 Asian countries are expected to gather at a conference to discuss the status of the regional bicycle industry and orientations for its development as well as seek ways to boost links between enterprises in the sector.

The exhibition and fair chain will run until December 5.

Vietnam, India boost trade cooperation

Vietnamese and Indian businesses gathered in Hanoi on December 2 to exchange information and seek partnerships.

Organised by the Vietnam Chamber of Commerce and Industry (VCCI), the Vietnam-India Business Meeting saw the participation of 15 Indian companies.

Addressing the function, VCCI Vice President Hoang Quang Phong said that India is a big trade partner of Vietnam, with two-way trade hitting 5.6 billion USD in 2014. Indian businesses have so far poured about 300 million USD into 87 projects in Vietnam.

Vietnamese enterprises hope to receive technological support from India in the fields of tea processing, mining, information technology and heavy industry, which are India’s strengths, he said.

Indian businesses stated that India is a market of great potential and demand but bilateral trade and investment cooperation is yet to match both sides’ potential and meet their aspirations.

At the seminar, Indian firms operating in food processing, environmental pollution control, electronics, pharmaceuticals and mechanical engineering expressed their wish to study the Vietnamese market.-

First supporting industrial park in HCM City

The Hiep Phuoc Industrial Park Joint Stock Company (HIPC) has introduced the project to build Hiep Phuoc Supporting Industrial Park to domestic and foreign investors in Ho Chi Minh City.

This is the pilot project on building parks which major in supporting industries in the city, according to the city's People's Committee.

The project covers a total area of 201 hectares.

The project will give priority to key industrial sectors of the city like mechanics, electronics, power, plastic, rubber, food processing and others.

Vuong Huu Man, HIPV General Director of HIPC said that the park would be divided into small plots of 1,500 square metres and above to meet the demand of domestic businesses.

Domestic and foreign businesses will receive investment incentive policies from the city's authorities such as being supported interest rates, rights to borrow a maximum of 70 percent of the total investment capital at credit organisations like the Bank for Investment and Development of Vietnam, Vietinbank, and others.-

Hanoi show fans Vietnam – RoK business activities

A show opened in Hanoi on December 2 to energise business activities between Vietnam and the Republic of Korea (RoK) amid the countries’ free trade agreement that was recently ratified by the RoK National Assembly.

About 40 major RoK businesses and 400 others from Vietnam are taking part in the two-day Korea Vietnam Show.

The RoK firms are showcasing cosmetics, food, beverages, apparel, consumer goods, medicine, medical equipment, electronic products and industrial machinery. Their Vietnamese counterparts are also displaying products while seeking importers of agricultural and aquatic goods and garments into the RoK.

Director of the Korea Business Centre in Hanoi and the show’s organiser Lee Kyu Seon said the Vietnam – RoK Free Trade Agreement has opened up numerous opportunities for cooperation between the countries’ enterprises.

RoK companies highly value and believe in the Vietnamese market’s potential, he noted, adding that his centre has held seven similar shows and three large-scale exhibitions in the Vietnamese capital city so far this year.

The trade deal was signed by the two Governments in May this year and ratified by the RoK National Assembly on November 30.

Accordingly, Vietnam will remove import tariffs on 89.9 percent of goods hailing from the RoK within 15 years of the pact’s enforcement. Meanwhile, the RoK will eliminate import tariffs on 95.4 percent of Vietnamese products.

Can Tho looks for investment from France

The potential and strengths of Can Tho and other localities in the Mekong Delta region were introduced to French businesses at a trade promotion conference held in Paris on November 30.

Hosted by the Department of Foreign Affairs of Localities under the Ministry of Foreign Affairs, the Vietnamese Embassy in France, the Can Tho People’s Committee, the Chamber of Commerce and Industry of France in Vietnam (CCIFV) and the Vietnam European Business Network, the event aimed to promote trade links between France and regional localities.

According to Nguyen Hoang Long, Acting Director General of the Department , the Vietnam-France strategic partnership has witnessed important development steps recently, especially in economics.

Leaders from the city said Can Tho is calling for investment in high-tech agriculture, processing farm products and food, biotechnology, agricultural mechanics, supply chains, agricultural service, textiles, IT and education.

Meanwhile, the Mekong Delta, as the largest area for agriculture and aquaculture in Vietnam, with an abundant labour force and upgraded infrastructure system, hopes to be an attractive destination for foreign investors.

CCIFV President Guillaume Grouzet, also Director of the Vietnam European Business Network, detailed assessments of prospects for Vietnam’s economic development from the France business community and the EU. They also discussed opportunities and challenges for the two sides’ enterprises as the European Union-Vietnam Free Trade Agreement (EVFTA) is signed.

After the conference, Chairman of the People’s Committee of Can Tho Vo Thanh Thong had a working session with the French Ministry of Foreign Affairs to discuss preparations for the 10th Conference on cooperation between Vietnamese and French localities, which is slated for September 2016 in Can Tho.

France is Vietnam’s leading trade partner in the EU, with two-way trade hitting 3.5 billion USD in 2014, up 10.7 percent against the previous year.

The country is the second largest EU investor in Vietnam, with a total registered capital of 3.38 billion USD as of June this year.

Trade and investment cooperation between the two countries is expected to become stronger when EVFTA takes effect.

Pepper export revenue enjoys steady growth

Vietnam’s peppercorn shipments to foreign markets performed well, with the January-November period’s export revenue close to that recorded in 2014, reported a conference in Ho Chi Minh City on December 1.

According to the Vietnam Pepper Association (VPA), the country exported 124,000 tonnes of peppercorn, raking in 1.3 billion USD in the first 11 months of the year, a year-on-year decrease of 17 percent in volume and 2.8 percent rise in value.

In the reviewed period, the average export price of pepper was 9,528 USD/tonne, up 20 percent compared with the previous year.

The country aims to sell about 130,000 tonnes of pepper this year, with earnings of 1.24 billion USD.

Last year, 156,0000 tonnes of peppercorn were sent to foreign markets, bringing 1.21 billion USD to the country, representing a 16.38 percent increase in volume and 34.72 percent in value – the highest figures recorded so far both in volume and value.

Since 2000, Vietnam has been the globe’s leading pepper producer and exporter, accounting for a 50 percent share of the world market. It sells peppercorns to 100 countries and territories worldwide with Singapore, the United Arab Emirates and the US as the largest buyers.

In recent years, the country’s pepper cultivation area has expanded, with that of 2015 estimated to exceed 100,000 ha.

According to VPA Chairman Do Ha Nam, the pepper sector is seeing difficulties, as it has to satisfy stricter requirements on food safety from foreign importers.

This situation requires the Ministry of Agriculture and Rural Development to create master strategies for the sector’s development in each locality, Nam stressed, adding that it was necessary to issue support policies and measures to promote pepper production in accordance with the Good Agricultural Practices guidelines.

Dak Lak: Coffee output continues dropping

Coffee bean output in the 2015-16 crop in the Central Highlands province of Dak Lak is likely to reach 440,000 tonnes, a decrease of 14,000 tonnes from the last crop, according to the provincial People’s Committee.

This is the second consecutive crop that faces a drop in output.

Severe droughts have hurt the production as nearly 48,000 hectares of coffee plants suffered from water shortages.A large area of ageing coffee plants is another reason.

According to a plan targeted for the 2015-16 crop, the province will ship abroad about 250,000 tonnes of coffee beans, up nearly 83, 000 tonnes against the last crop.

It is currently focusing on raising farmers’ awareness of sustainable coffee production and implementing the correct production processes to ensure high capacity and quality.

Meanwhile, enterprises are encouraged to expand export markets and promote business cooperation with domestic and international partners.

Dak Lak, the country’s largest coffee cultivation zone , is now home to more than 200,000 hectares of coffee.

Vietnam currently has 671,000 hectares of coffee, making it one of the major hard currency earners.

In 2014, the country raked in 3.55 billion USD from coffee exports.

UK shares experience on institutional reform

UK experts shared their country’s experience in constitutional reform to increase State agencies’ transparency and accountability at a workshop in Hanoi on December 1.

The event was jointly held by the British Embassy in Hanoi and the Department of Administrative Procedures Control of the Ministry of Justice, discussing challenges and priorities of Vietnam in implementing its institutional reform scheme, including simplifying administrative procedures on business licensing and inspection.

Sarah Smile, Deputy Chief Executive of the UK’s Better Regulation Delivery Office (BRDO) said reducing unnecessary documents is one of the government’s top concerns as it helps enterprises operate more effectively and improves the business climate.

Meanwhile, local experts shared the progress of Vietnam’s institutional reform and the government’s plans to speed up innovations in the future.

The Ministry of Justice has cooperated with relevant ministries and units to introduce a national one-stop-shop portal, which is based on information systems on administrative procedures, population, land- construction and businesses, they said.

Following the workshop, Vietnamese and UK experts will have in-depth discussions on this field.

Administrative reform falls short of corporate expectation

Administrative reform across several State agencies has yet to provide instruments to help local businesses get off the ground, as heard during the Vietnam Business Forum opened in Hanoi on December 1.

Reviewing the overall economic picture, Minister of Planning and Investment Bui Quang Vinh admitted to shortcomings in both nationwide drives to overhaul administrative procedures, fight corruption and wastefulness and preparations of enterprises for global integration.

Efficient administrative models have been devised, however, have yet to be implemented effectively, he said.

The minister added that Vietnam is still making its way towards completing a market economy mechanism with priorities focusing on improvements in corporate competitiveness, business climate and the legal framework.

Representing the business community, Vietnam Chamber of Commerce and Industry (VCCI) Chairman Vu Tien Loc acknowledged improvements in the Government and levels’ efforts on administrative reform. However, he said, they have yet to meet businesses’ expectations.

According to Loc, a recent survey conducted by his agency revealed that the scale and success of a private company parallels the administrative costs and the rate of inspections it faces.

Statistics showed that domestic enterprises on average are becoming smaller in size.

Loc proposed alongside administrative reform, legal reform should be top of the agenda in a bid to improve local business environment amid the upcoming implementation of several free trade agreements.

The annual forum has seen increasing number of attendance in recent years, reflecting the importance of effective communications between the Government and the business community.

Both sides have common ground covering a range of spheres, including trade, investment, banking, infrastructure and human resources.

The World Bank’s International Finance Corporation, the Ministry of Planning and Investment and the VCCI coordinated the annual dialogue this year.

Dong Nai attracts 2.4 bln USD in FDI capital in 11 months

The southern province of Dong Nai attracted nearly 2.4 billion USD of foreign direct investment (FDI) as of November 20, exceeding the yearly target by 1.5 billion USD, according to the province’s Department of Planning and Investment.

The amount includes 1.75 billion USD from 100 new projects and more than 618 million USD added to 86 operational ones.

Most of the new projects come from Japan and the Republic of Korea (RoK) and have advanced and environmentally-friendly technologies.

Many of them operate in the support industry in a bid to increase the supply of locally-made components for the domestic manufacturers.

Chairman of the provincial People’s Committee Dinh Quoc Thai highlighted the effective operation and the expansion of foreign invested projects, including those run by Formosa, Hyosung, Changshin, Pouchen, CP, Mabuchi Motor, Fujitsu, Kenda, and TaeKwang.

According to Chairman of the Japanese Fujitsu Group Masami Yamamoto, the group has almost tripled its investment in the province, from an initial 78 million USD to 200 million USD, in anticipation of opportunities to be brought by the establishment of the ASEAN Economic Community.

Officials from the consulates general of Japan, the RoK, Thailand, Italy and Singapore in southern Vietnam said Dong Nai is one of the attractive destinations for investment thanks to its developed infrastructure, especially with the to-be-built Long Thanh international airport.

As of now, Dong Nai has licensed 1,556 FDI licenced projects, worth a total of nearly 28.4 billion USD.

Of which 1,189 projects are still valid with a combined capital of nearly 24 billion USD, most of them (1,039) are locate d in industrial parks.

Forum aims to enhance business capacity

The annual Vietnam Business Forum (VBF) is expected to provide a communications channel between the Government, domestic and international business communities to boost competitiveness amid global integration.

State officials and representatives from the International Finance Corporation, the World Bank and associations of Vietnamese, European, Korean, Japanese and Australian businesses will attend the event, Vietnam Chamber of Commerce and Industry (VCCI) Chairman Vu Tien Loc told a press conference on November 30

The forum takes place as Vietnam has concluded negotiations of the Trans-Pacific Partnership and several free trade agreements alongside the formation of the ASEAN Economic Community by the year end.

Participants will discuss relevant legal frameworks and corporate demand in order to enhance overall competitiveness of the economy.

According to the VCCI Chairman, the National Assembly issued new laws on investment and entrepreneurship during 2015. Legal documents and policies to reduce administrative procedures and boost interaction among the Government, enterprises and grassroots businesses have also been put into effect.

The law has made it clear that all legal documents related to the economic climate must take into account businesses’ feedback via the VCCI.

Under Resolution 19/2014-2015, the Government is striving to be ranked among the top four ASEAN members in terms of its business environment in 2016.

Mr Loc also pointed to the importance of disseminating practical information on global integration affairs, international commitments and new trade pacts.

He said issues such as the minimum wage, social insurance, extra working hours and imports of used machinery are on business communities’ radar.

The VBF is scheduled to take place on December 1.

Lao PetroVietnam Oil marks 5th anniversary

A ceremony to celebrate the 5th anniversary of Lao PetroVietnam Oil (PV Oil Laos), a subsidiary of the PetroVietnam Oil Corporation (PV Oil), was held in Vientiane on November 30.

The event was attended by Vietnamese Ambassador to Laos Nguyen Manh Hung and Vice President of the Vietnam National Oil and Gas Group Nguyen Sinh Khang, along with Lao officials and Vietnamese businesses in Laos.

Speaking at the ceremony, chairman of PV Oil Laos’ board of directors Huynh Nguyen Bach Tuyen expressed his gratitude to the Lao Party and Government for facilitating conditions for the company to operate.

PV Oil Laos will enlarge its retail network and develop its petrol business, making contributions to Laos’ socio-economy and tightening the special relations between the two countries, Tuyen highlighted.

With initial charter capital of 3 million USD, PV Oil purchased Shell du Laos Co in late 2009 and put PV Oil Laos into operation on December 1, 2010.

Despite difficulties caused by the global economic crisis, PV Oil Laos has made stellar achievements and become a leading subsidiary of PV Oil.

From 70 petrol stations in 11 out of 17 provinces and cities in the early days, the company has increased its presence to 15 provinces with 104 petrol stations. PV Oil Laos has become popular among Lao residents, resulting in revenue of over 100 million USD every year.

The company also proactively takes part in charitable activities in Laos.

PV Oil Laos’ success has backed PV Oil’s sound strategy of expanding its investment in foreign countries to bring its services to international markets.

Finance Ministry, BIDV sign 105 million USD loan

The Ministry of Finance and the Bank for Investment and Development of Viet Nam (BIDV) signed a 105 million USD sub-loan in Hanoi on November 30.

The Vietnam Sustainable Agriculture Transformation project (vnSAT) project, which borrowed the total capital of 238 million USD from World Bank's preferential loan, aims to specifically support implementation of the new agenda in two sub-sectors including high value rice production for export in the Mekong Delta and coffee in the Central Highlands.

The Ministry of Agriculture and Rural Development has implemented the project while the BIDV was assigned to manage and disburse the loan under wholesale bank model.

The project would strengthen the ability of governmental agencies in research, design and transferring technologies to farmers, as well as implementing and supervising restructure, and renewal of the agricultural sector.

In addition, the project would provide direct support to around 140,000 households planting rice in eight provinces including Kien Giang, An Giang, Hau Giang, and Tien Giang, apart from Long An, Dong Thap, Can Tho and Soc Trang provinces, to access and apply advanced technologies.

The households would benefit from the project by being able to join the value chain from production to consumption. Their profits were expected to increase by 30 per cent per hectare, bringing the total additional value between 40 million USD and 60 million USD a year for the whole region.

In the Central Highlands region, around 63,000 farmer households in five provinces of Lam Dong, Dak Lak, Dak Nong, and Gia Lai, in addition to Kon Tum, would have access to technologies of sustainable coffee planting and re-planting, with expected additional income of 20 percent a year and 50 million USD for the region.

Tran Anh Thu, director of the BIDV's Branch 3 which would directly manage the loan, said the bank would provide preferential loans to businesses in the Mekong Delta to upgrade rice processing technologies and machines as well as to farmers in the Central Highlands to replant coffee trees.

"After completing the signing, the BIDV expects to disburse the capital from the beginning of the first quarter of 2016," Thu said.

This has been the fourth time when the ministry and the BIDV have signed sub-loans of international credit projects.

Previously, the bank received loans from three agricultural financial projects with total of 548 million USD from the WB.

The BIDV has safely managed and disbursed the loans and paid the principal, interest and commitment fees on time.

The bank disbursed 44 trillion VND (2.1 billion USD) for agricultural and rural development and lending to 1.7 million households of which 600,000 were poor and low income households. The loans also created 400,000 jobs for people in rural areas.

Regulations in the projects have also contributed to increasing people's awareness in rural areas to protect the environment when implementing their production plans.

Vietjet shakes hands with Military Bank

Vietjet Air and Military Bank (MB) reached a cooperative agreement on December 2 where MB will provide the carrier with a short-term credit of VND500 billion ($88.5 million) to add to its working capital and be disbursed for the prepayment of aircraft.

“We are very happy about our partnership, which will lead to more cooperation in the future between Vietjet and Military Bank,” said Mr. Luu Trung Thai, MB’s Vice Chairman. “Together we will offer consumers more convenient and comfortable services in the future.”

The bank will also provide Vietjet with a long-term credit to be spent on one or two new aircraft from Airbus, together with other mutually beneficial banking services.

The two agreed to collaborate in offering a new market approach that can optimize Vietjet’s booking system and MB’s MB Plus service.

Vietjet is currently expanding its network within Vietnam and connecting to other destinations in the region, with its continually developing fleet of modern aircraft. “One of the airline’s priorities is offering passengers high quality aviation services,” said Managing Director Luu Duc Khanh. “Vietjet is dedicated to innovating and developing our services.”

The airline recently secured IOSA Certification from the International Air Transport Association (IATA) after just three years of operations. It was also declared “Best Asian Low Cost Carrier” at the TTG Travel Awards 2015, which compiles votes from travelers, travel agencies, and tour operators in Asia. The airline was also rated as one of the top three fastest-growing airline brands on Facebook in the world by Socialbakers.

The airline boasts a fleet of 29 aircraft, including A320s and A321s, and operates 190 flights each day. It has already opened 38 routes in Vietnam and across the region to international destinations such as Thailand, Singapore, South Korea, Taiwan, China, and Myanmar, carrying more than 18 million passengers to date.

Yearly shrimp export could drop by 1 billion USD

Vietnam is likely to earn around 3 billion USD from shrimp exports in 2015, down one billion USD from the previous year, due to falling prices.

Secretary General of the Vietnam Association of Seafood Exports and Producers (VASEP) Truong Ding Hoe spoke at a meeting with the Ministry of Industry and Trade in Hanoi on November 30 to review seafood exports from January to November 2015.

Since the middle of 2014, shrimp export prices have dropped by about 30 percent, resulting in the reduction of export revenue.

The year 2016 seems more promising, with advantages stemming from new trade agreements, he said.

However, Vietnam might face competitive prices from its rivals, particularly Indonesia , he warned.

Apart from promoting trade and removing barriers, it is important to reduce production costs, increase food hygiene and investigate safety violations, he suggested.

Farmers are expected to supply material for manufacturing and processing plants to boost export growth, he added, proposing that the Ministry of Industry and Trade strongly support the sector.

Seminar seeks increased Vietnam-Brazil trade, investment

A seminar themed “Vietnam-Brazil relationship: potential and opportunities” was held in Hanoi on November 30 to provide a platform for discussions on ways to promote trade and investment between the two countries.

President of Vietnam’s Academy of Social Sciences (VASS) Nguyen Van Thang reviewed the outcomes of bilateral cooperation in recent years, especially in economics, trade and investment.

Two-way trade between Vietnam and Brazil hit 3.18 billion USD last year from 47 million USD in 2003. In 2008-2014, total exports and imports grew annually by 41 percent.

Brazilian Ambassador Marco Brandao touched upon business opportunities in aviation, agriculture, energy and transport, among others.

Cu Chi Loi, Director of the VASS’s Institute of American Studies, said Vietnam and Brazil are key bridges to enter regional markets. Bilateral ties are expected to grow robustly as the two countries integrate further into their respective regions.

He suggested formulating a free trade agreement, issuing trade and investment support mechanisms, promoting the launch of banks and convenient payment methods, and expanding people-to-people and cultural exchanges.

Participants discussed Brazil’s foreign policy and ties with Vietnam, business support for Vietnamese firms and Brazilian business activities in Vietnam.

The event was co-hosted by the Vietnam-Brazil Friendship and Cooperation Association and the VASS’s Institute of American Studies.

CBRE Vietnam manages Phu My Hung projects in HCM City

Commercial Real Estate Services (CBRE) Vietnam has been selected to manage the Phu My Hung Development Corporation’s commercial projects in Ho Chi Minh City’s District 7, according to CBRE on November 30.

CBRE Vietnam will manage seven projects including office buildings and commercial centres that cover a combined area of 160,000 sq.metres.

CBRE Managing Director Marc Townsend expressed his delight at the deal and hoped that the two companies will cooperate more in the future for the development of the district.

CBRE Vietnam pledged to provide the best services for clients, investors and residents in the area, Marc Townsend said.

Phu My Hung is the first planned urban zone in Ho Chi Minh City to be equipped with developed infrastructure.

PVN’s revenue falls amid oil price drop

Falling oil prices have affected the National Oil and Gas Group (PVN)’s targets on projected revenue and contribution to the State budget, said Do Chi Thanh, Deputy General Director of the group.

Thanh made the statement during an online conference held by the Ministry of Industry and Trade on November 30.

The group’s leader said the average oil price in the first 11 months of this year hovered around 55.60 USD per barrel, down 50.40 USD compared to the same period last year.

The falling price has resulted in low total revenue in the reviewed period by reaching only 511 trillion VND (about 23 billion USD) or equivalent to 74.2 percent of its yearly target.

PVN set its revenue for this year of 718.4 trillion VND (32.5 billion USD). Due to falling price in crude oil, the group’s revenue will face a loss of 163.4 trillion VND (7.4 billion USD).

From January to November, PVN contributed to the State budget a total of 108 trillion VND (4.9 billion USD), equivalent to 61 percent of the year’s target.

According to reports from PVN leaders, the basic indicators of its production were all achieved and expected. Specifically, its output of crude oil reached 17.19 million tonnes, exceeding 2.3 percent of its plan or up 8.9 percent over the same period last year.

Gas exploitation reached 9.7 billion cu.m, or 99 percent of its yearly plan and electricity production after 11 months also hit 20.01 billion kWh, exceeding 8.2 percent of the yearly target. Petroleum production also obtained 6.33 million tonnes, up 14 percent of the yearly target.-

Chinese locality boosts exports to Vietnam

China’s Yunnan Province Control and Quarantine Bureau has promoted exports to Vietnam, as foreign trade has experienced a decline recently, according to the China News.

Thebureau has carried out several measures to beef up exports to Vietnam, including facilitating the issuance of certificates of origin, which lays a foundation for enterprises to enjoy preferential tariffs in accordance with bilateral and regional free trade agreements (FTA).

It has also streamlined administrative procedures in order to help enterprises obtain certificates as soon as possible.

From January to September 2015, the province’s export turnover to Vietnam reached 1.05 billion USD, up 21.4 percent compared to the same period last year.

During the reviewed period, the bureau issued 8,302 FTA certificates of origin with total deducted tariffs of over 11 million USD.

HCM City reports robust growth

The HCM City economy has maintained an increasingly positive trend and a stable economic growth in the first 11 months of the year, creating favourable conditions to achieve the year's socio-economic targets, according to a report from the HCM City Institute for Research and Development.

The report, released at a meeting of the People's Committee on November 26, said industrial production rose by 7.7 percent. Industrial production has been restructured with a focus on increasing manufacturing and reducing mining.

The city's four major industries (mechanics/manufacturing, chemicals/rubber/plastics, electronics, and food processing) are estimated to grow at 8.1 percent, higher than last year and also higher than the sector average.

Foreign direct investment is on the rise. As of November 20, city authorities licensed 517 new foreign projects and permitted 141 existing projects to increase their capital, with 3.2 billion USD to be invested, up 1.7 percent year-on-year.

Besides, nearly 28,750 new domestic companies were licensed.

According to the HCM City Statistics Bureau, good market management and the price stabilisation programme have helped keep prices in check, with the consumer price index in November rising by 0.1 percent compared with the previous month.

Total retail sales and services were worth nearly 61.1 trillion VND, a year-on-year increase of 8.9 percent.

Le Hoang Quan, Chairman of the city People's Committee, said economic growth is expected to be 9.8 percent this year.

To achieve this target and at the same time to create favourable conditions for 2016, city authorities and the business sector must prepare well to source inputs needed for manufacturing to meet demand, especially during Tet (the Lunar New Year), he said.

Quan also instructed authorities to help businesses in preparing for integration into the ASEAN Economic Community by the end of the year, especially with financial, taxation, educational, health, commercial, and employment issues.

The People's Committee listed eight major tasks for next month, including stepping up the fight against tax losses, investment and business promotions with other localities in the country to create more business opportunities, and removing difficulties faced by city businesses.

The banking industry was urged to continue providing funds for businesses, keep credit conditions flexible, provide sufficient resources for the city's economy, and effectively manage the foreign currency market to keep exchange rates stable, improve balance of payments and sustain foreign currency reserves.

AEC creates economically competitive bloc

The creation of the ASEAN Economic Community (AEC) as part of the three key pillars of the ASEAN Community aims to develop a stable, prosperous, highly competitive economic association.

It also looks to narrow socio-economic development gaps between member countries to enhance their competitive edge and lure external investment. The other two key pillars are the Political-Security Community and the Socio-Cultural Community.

The AEC itself was built with four pillars: a single market and production base, a competitive economic region, equitable economic development and integration with the global economy. A scorecard was formulated to track the members’ progress implementing the plans for the AEC.

ASEAN member states could enjoy a number of benefits following the establishment of the AEC such as rapid economic growth, more jobs, stronger foreign direct investment attraction, better resource allocation, and sharper production capacity and competitiveness.

The bloc’s leaders set an ambitious goal of developing ASEAN into a single market and production base characterised by a free flow of goods, services and investments, as well as free flow of capital and skilled labour.

ASEAN has moved to remove tariffs and non-tariff barriers, address customs and import-export procedures, complete regulations on product origins, and implement the Initiative for ASEAN Integration (IAI).

Once established, the AEC will play a crucial role in the bloc. It will connect partners in the ASEAN Free Trade Area (AFTA) and external economic partners to change regional architecture.

ASEAN countries have implemented important agreements to build the AEC such as the AFTA, ASEAN Trade in Goods Agreement (ATIGA), ASEAN Framework Agreement on Services (AFAS), ASEAN Investment Area (AIA), ASEAN Comprehensive Investment Agreement (ACIA), ASEAN Industrial Cooperation Scheme (AICO), and the Roadmap for Monetary and Financial Integration of ASEAN.

During the AEC building process, the association has reduced tariffs to between 0 and 5 percent for target products of 10 member countries between 2010 and 2015. The group has been implementing the ASEAN Framework on Equitable Economic Development (AFEED), as well.

Regarding expanding integration in the global economy, ASEAN has stepped up the implementation of free trade agreements (FTAs) with six major partners: China, Japan, the Republic of Korea, India, Australia, and New Zealand. It has also negotiated to build the Regional Comprehensive Economic Partnership (RCEP) agreement to create an open economic space in East Asia.

The AEC is expected to raise the bloc’s gross domestic product (GDP) by 7 percent by 2025 and create major changes in the Asian economic structure.

HCM City expos attract 588 firms

The 2015 Vietnam Expo and Vietnam Cycle that opened yesterday in HCM City seek to promote the country's trade and investment.

"The expos bring together investors and producers in and from outside Viet Nam operating in the industries of machinery and equipment, agricultural produce, food processing, construction, electrical-electronics, IT and others, and open up opportunities for trade and investment co-operation and enlarging markets," Deputy Minister of Industry and Trade Ho Thi Kim Thoa told the opening ceremony.

Vietnam Expo has attracted 468 companies from 20 countries and territories including Switzerland, Taiwan, Korea, Japan, and Romania, who are displaying their products in 500 stalls.

Taiwan Excellence is a large pavilion displaying 70 products certified as being of the highest quality in Taiwan.

Tang Ming Hui, director of the HCM City office of the Taiwan External Trade Development Council, said Viet Nam is Taiwan's 10th largest trade partner and one of its 15 key markets.

Cho Chun Yong, chairman of the Bucheon City Chamber of Commerce, said a wish to help boost trade with Viet Nam was the reason for taking part in the expo. Bucheon is strong in automation equipment for packaging and home appliances.

More than 70 businesses from various parts of Korea are attending the expo.

Korea is Viet Nam's second largest investor with a combined investment of US$36.7 billion so far.

The deputy minister also welcomes the 2015 Vietnam Cycle, saying it is in line with the country's policy to boost the use of bicycles for environmental conservation.

Around 120 companies from 20 countries and territories, including Taiwan, Japan, and India, are exhibiting their products and components at 150 stalls, which include brands like Thong Nhat, Terra, Strongman, Schwalbe, Asama and Deli Tire.

The expos, on at the Saigon Exhibition and Convention Center in Nguyen Van Linh Avenue and organised by Vinexad, will go on until Saturday this week.

Coffee industry in trouble as prices plunge

Despite efforts to reduce costs and increase yields, Viet Nam's coffee exports have faced a difficult year, delegates heard at a seminar in HCM City yesterday.

"The international coffee market has seen unexpected trends and seriously impacted Vietnamese exports," Deputy Minister of Agriculture and Rural Development Le Quoc Doanh said at the 2015 Viet Nam Coffee Outlook and Sustainability Forum.

"We should find a way to cope with the situation to ensure the development of the industry."

This year the Vietnamese coffee industry has seen domestic prices fall relentlessly since the beginning of the year, an unusual trend.

"Sustainable coffee production continued to increase and replantation has been going up," Tran Cong Thang of the Institute of Policy and Strategy for Agriculture and Rural Development said.

In 2014 -15 the area under coffee was 641,700 hectares, almost the same as the previous year.

The Government plans to spend VND12 trillion (US$540 million) to replant coffee trees in five Central Highlands provinces, where the existing trees are aged 20 years in some places.

"Production costs decreased because labour, petrol and fertiliser costs went down," Thang said.

The cost per kilogramme has fallen from VND28,000 ($1.25) last year to VND22,181 ($0.99) now, he said.

"Exports in the first 10 months of 2015 were down 29.3 per cent in volume terms year-on-year and 31.1 per cent in value."

But Viet Nam remained the second largest exporter accounting for 18 per cent of all exports in 2014-15, compared with 22 per cent the previous year.

This year coffee exporters have found it difficult to buy since prices have fallen and farmers and agents do not want to sell.

"Low quality of coffee -- because farmers rarely invest in post-harvest technology — and exchange rate volatility cause risks to enterprises borrowing foreign currency to support their export activities," Thang said.

The lack of uniform coffee futures prices in the country, higher domestic prices compared to global prices and high bank interest rates of 7 per cent or more, and difficult lending procedures also plague exporters.

The area under coffee in 2015-2016 is expected to decrease by 30,500ha though output is likely to increase by 26,000 tonnes.

To address the industry's problems, Ted van de Put, member of the executive board of the Netherlands-based Sustainable Trade Initiative in Viet Nam released a report titled "Collective Impact for Sustainable Coffee Communities with vision 2020".

"We build a common public-private agenda to realise collective impact on large-scale challenges for the resilience and livelihoods of coffee farming communities and the sector as a whole," he said.

He said the Government should support public-private dialogue and collaboration in the national coffee sector strategy, strengthen existing/new platforms in countries with increased ownership by public sector and engagement and inclusion of the international and national private sectors.

In the field of national sustainability, he advised a public-private participatory process that identifies national and international priorities for achieving a healthy coffee sector.

The result would be a commonly endorsed basic farmer training materials and methodologies for sustainable, profitable production, he said.

"Financial literacy and access to finances is a must by promoting a basic level of financial literacy and access to finance for inputs, especially for smallholder farmers.

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR